Fortnite prints money for Epic Games, and we’re not talking about V-bucks. According to NielsenSuperData, the video game research company of, Fortnite topped $ 1.8 billion in revenue in 2019 and was the highest grossing game that year. Final numbers are likely to be even higher in 2020, as has been reported Fortnite grossed $ 400 million in April alone due to the pandemic.
The success of Fortnite catapulted founder and CEO Tim Sweeney onto the Forbes List of world’s billionaires with an estimated net worth of over $ 5 billion. It’s understandable that many of them are hoping the stock will debut on the public market soon, and pay close attention to any corporate action that could signify an upcoming IPO or PSPC.
That’s why a recent hiring for the company raises eyebrows.
An epic hire for investor relations
The new recruit has sparked a media feeding frenzy. Bloomberg Technology columnist Tae Kim first noticed that the private company had hired an investor relations specialist. This was surprising because, to date, Epic Games has used its discretion in its rounds and has chosen to take money from strategic investors rather than purely financial backers.
Conversely, an investment relations specialist tends to be a hire for SOEs, as the role frequently communicates with purely financial backers such as hedge and mutual fund managers and others. large buyers of public stocks. The unsurprising assumption regarding this hire was that Epic Games planned to follow its video game counterpart Roblox by going public.
As a private company, Epic Games has no obligation to disclose funding information, but press releases and other publicly available data confirm that the company has only taken three rounds of funding since 2012. In total, Epic has raised $ 3.4 billion in funding, with the August 2020 increase of $ 1.75 billion being the largest.
In the last round of funding, Epic Games had a post-money valuation of $ 17.3 billion. Millennial Money has a deeper dive on Stock Epic Gamesincluding which public company owns 40% of Epic Games which you can buy right now!
Epic Games are changing their tone … slightly
An Epic Games spokesperson responded to a request from video game fan site Shacknews regarding the rental of IR:
It’s quite common for companies our size to hire people to help broaden and deepen relationships with existing investors and build new relationships. Epic always monitors the market and is ready to consider opportunities as they arise, but for now, our focus is on investing in our business, executing our opportunities, and creating value for our investors.
Epic Games might consider this a fairly common rental, but the rest of the communication represents a light change in tone from Sweeney’s long-term catch-all response that the company has no plans to go public.
If Epic Games decides to go public, chances are the company will be one of the hottest IPOs in 2021. Fortnite has become a cultural rite of passage and is quickly becoming a lifestyle brand for its massive base of 350 million users. Last year rapper Travis Scott made $ 20 million for a 9-minute digital concert to Fortnite.
For a breakdown of fundraising rounds, backers, and an in-depth look at the risks and potential opportunities of this high interest video game stock, check out the Stock Epic Games deep dive into Millennial Money.
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